Results reflect continued stabilisation in performance and market trends

AIG has reported a net income of $455m, including net income attributable to AIG common shareholders of $92m, or $0.68 per diluted common share for the third quarter ended September 30, 2009, compared with a net loss of $24.5 billion or $181.02 per diluted share in the third quarter of 2008.

Third quarter 2009 adjusted net income was $1.9 billion, compared with an adjusted net loss of $9.2 billion in the third quarter of 2008. The company reported a rise in sales to $26 billion a 189% increase compared to last year quarter.

For the first nine months of 2009, the company has reported a net loss of $2.1 billion, including net loss attributable to its common shareholders of $3.37 billion, or $24.92 per diluted common share, compared with a net loss of $37.63 billion or $287.99 per diluted share in the first nine months of 2008.

In first nine months of 2009 adjusted net income was $2.3 billion, compared with an adjusted net loss of $14.12 billion in 2008.

Robert Benmosche, president and CEO of AIG, said: “Our results reflect continued stabilization in performance and market trends. AIG employees are working to preserve the strength of our insurance businesses in a challenging market by working closely with our distribution partners, with third quarter 2009 showing signs of stabilization. Pricing in our commercial property casualty business has been stable.

“At AIGFP, virtually all key risk measures are down significantly and the earnings again benefited from a positive unrealized market valuation gain on the Super Senior Credit Default Swap portfolio. Additionally, we announced the sales of Nan Shan and a portion of AIG’s investment advisory and asset management business, as well as the combination of our Domestic Life Insurance & Retirement Services businesses and ongoing efforts to build their value as part of AIG.”